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Simon Griffiths Property Finance Property Finance Advisor & Broker helping people with Mortgages & Bridging Loans

29/09/2026

UK PROPERTY & MORTGAGE MARKET UPDATE – SEPTEMBER 2026

Whether you're looking to buy your next home, move house, remortgage or grow a property portfolio, the mortgage and property market is changing — and having the right finance strategy matters.

📊 What are we seeing in the market right now?

🔹 Bank Rate currently sits at 3.75%.

🔹 Average UK fixed mortgage rates have moved higher, with Moneyfacts reporting average rates of around 5.73% for a 2-year fix and 5.78% for a 5-year fix in mid-September.

🔹 The Bank of England reports that the UK property market has softened, with transaction levels below last year in some areas and affordability continuing to influence demand.

🔹 Mortgage approvals for house purchases fell to 54,918 in August, the lowest level since December 2023.

So, what does this mean for you?

🏠 HOME BUYERS:
The mortgage landscape can be complicated, particularly when comparing lenders, affordability and different deposit levels. The right advice can help you understand what you can realistically borrow and which options may be available to you.

🏢 PROPERTY INVESTORS & LANDLORDS:
Whether you're purchasing your first investment property, refinancing an existing portfolio, raising capital or looking at your next acquisition, lender criteria and the numbers behind the deal are increasingly important.

💷 REMORTGAGING?
If your current deal is coming to an end, it's worth reviewing your options early rather than waiting until the last minute.

🌍 UK-WIDE MORTGAGE ADVICE

I specialise in both residential and property investment finance, helping clients across the UK with their mortgage and funding requirements.

If you're considering a purchase, remortgage or investment, send me a message and let's discuss your plans.

📩 Your next property move starts with understanding your finance options.

Figures and market conditions are correct at the time of posting and can change. Mortgage availability, rates and affordability are subject to lender criteria and individual circumstances. Your property may be repossessed if you do not keep up repayments on your mortgage.

What Are Swap Rates and How Do They Impact the UK Property Market?SWAP rates serve as the primary benchmark for pricing ...
21/09/2026

What Are Swap Rates and How Do They Impact the UK Property Market?

SWAP rates serve as the primary benchmark for pricing fixed-rate mortgages across property sectors in the UK property market.
Specialist lenders and non-bank financial institutions rely on institutional funding facilities tied to floating benchmarks like SONIA rather than retail customer savings.
To offer fixed-rate loans safely, specialist lenders use interest rate swaps to lock in capital costs and eliminate market fluctuation risks.
Rapid shifts in SWAP rates force non-bank lenders to reprice mortgage products quickly to remain financially sustainable during volatile economic periods.
Navigating the modern UK property market requires a clear understanding of how mortgages are priced behind the scenes. While traditional high street banks draw largely on consumer deposits, specialist lenders and non-bank financial institutions rely on wholesale funding models tied directly to broader money markets. At the centre of this capital ecosystem are SWAP rates, the fundamental benchmark driving the cost of fixed-rate borrowing across residential, commercial, and buy-to-let sectors. Understanding how these rates are calculated—and why they move—is essential for brokers, investors, and borrowers looking to anticipate market shifts and secure reliable funding.

What are SWAP rates and how do they work?

A SWAP rate is the fixed interest rate exchanged for a variable or floating rate (typically SONIA, the Sterling Overnight Index Average) over a set financial period. Within the UK property market, SWAP rates reflect forward-looking market expectations regarding inflation, economic growth, and future Bank of England base rate adjustments. While variable-rate loans move alongside current central bank policy, fixed-rate mortgage pricing tracks these forward-looking SWAP rates instead.

How are specialist lenders and non-bank institutions funded?

Unlike high street banks that fund loans using retail customer deposit accounts, specialist lenders and non-bank institutions secure capital through wholesale funding facilities provided by global investment banks, pension funds, and private credit funds.

These institutional capital providers expect a return calculated using two core components:

A fixed margin: Compensation for credit risk and the capital provided.
A risk-free floating rate: A variable benchmark (primarily SONIA) that adjusts daily based on market conditions.
Because the variable component moves continuously over the life of a funding facility, a lender’s cost of capital shifts dynamically alongside financial markets.

Why do SWAP rates directly impact lending across the UK property market?

Because specialist lenders pay a variable cost to their funding partners, offering fixed-rate mortgages to property investors or homeowners creates a mismatch. If underlying market interest rates rise while a borrower’s mortgage rate remains locked, the lender’s profit margin shrinks or turns negative.

To hedge against this risk, non-bank and specialist lenders enter into interest rate SWAPs. By exchanging their variable funding liability for a fixed SWAP rate, the lender locks in their precise cost of capital for the duration of the borrower’s fixed term, protecting both the lender and the funder.

Why do lenders reprice mortgage products so quickly during market volatility?

Economic shifts, inflation reports, and central bank commentary cause daily fluctuations in SWAP rates. If SWAP rates jump sharply, a specialist lender’s profit margin on an active mortgage range can evaporate overnight.

For instance, if a lender offers a 5.25% fixed-rate mortgage when their total cost of capital (SWAP rate + funder margin) sits at 4.50%, they retain a 0.75% operational margin. If rapid market movements push SWAP rates up by 0.50%, that margin contracts to 0.25%—rendering the product unprofitable after administrative overheads. To avoid issuing unsustainable loans, specialist lenders must act swiftly to adjust pricing and maintain financial stability across the UK property market.

Source - Lendinvest

Simon Griffiths Property Finance
www.simongriffithspropertyfinance.co.uk
07773242019
[email protected]

16/07/2026

BTL REMORTGAGE AT FULL MARKET VALUE ON DAY 1
(No Evidence of Improvement works required)

Due to a recent change in lender policy, it is now possible to refinance your buy to let property at full market value immediately after purchase.

What does this mean?

Normal lender policy dictates that when you buy a property below market value you cannot immediately refinance at full market value to pull out cash - Unless you either wait 6 months or you can show you have improved and spent money on the property!

Both of these options would cost you more time and money before you can pull cash out and reinvest.

This new policy means you can potentially buy a property at auction below market value with cash or with bridging finance - refinance immediately and go again reducing bridge interest costs and without the need to spend on renovations.

24/03/2026

MOST PROPERTY INVESTORS OVERLOOK THIS !






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